Oil Price May Drop To $50pb

The Petroleum Technology Association of Nigeria (PETAN), an umbrella body of indigenous oil and gas service companies in Nigeria, has predicted that the emerging developments in the global oil and gas industry may soon force oil prices down to $50 per barrel, the lowest in decades.
President of the association, Engr Emeka Ene, who gave the indication at the 2014 Annual Oil and Gas Industry Awards Dinner in Port Harcourt, with the theme, “monetizing our gas resources for transforming Nigeria’s economy”, said that, “the global oil and gas industry is going through a rite of passage with the prospect of $50 per barrel prices not far-fetched”.
Ene, who spoke at an event attended by chief executives of major IOCs, indigenous companies, regulators and politicians, said that “for the first time, there appears to be a paradigm shift where oil prices are being determined, not by the stabilizing mechanism of OPEC-driven supply and demand adjustments, but through the unpredictable economic drivers of market forces, implying short and medium term instability.
He stated that “local content has significantly transformed the landscape of the Nigerian oil and gas industry by unleashing the entrepreneurial spirit and creativity of Nigerian technocrats, employing hundreds of thousands of artisans, operators, technicians and engineers” to bridge the technical capacity and manpower gaps in the industry, but added that, “we still have lots of ground to cover in the local content journey.
He tasked all stakeholders, including IOCs, regulators and governments, to accelerate implementation of local content law to save the country from very difficult days ahead.
In his keynote speech, Chief Executive Officer, Oando Gas & Power Limited, Bolaji Osunsanya, said that exploring maximally the value chain in the abundant associated and natural gas deposits would save Nigeria from the looming challenges the global energy crisis may trigger, saying that already, the nation’s gas, if harnessed, can conveniently generate about 30,000megawatts of electricity for Nigerians in addition to other utilities, including cooking gas and gas-to-liquid products.
Also speaking, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Ernest Nwapa disclosed that since the commencement of implementation of the local content law in 2010, investments worth more than $5.6billion have been attracted into the country.
Nwapa said government would soon eliminate importation of gas cylinders by increasing in-country production, just as it insists on local design and fabrication of vessel parts and components, including FPSO/FSO topsides, subsea equipment, pipes, and others.
Speaking shortly after receiving PETAN Chairman’s Outstanding Achievement Recognition Award, Igo Weli, attributed the milestones recorded thus far to the commitment of Shell staff and management, and the support of government, regulators and Nigerians to the implementation of the NCD Law, and pointed out that a lot more could be done through partnerships and collaborative efforts to build local capacity and capability in all areas of the industry.

Nelson Chukwudi